These are Open-Ended Investment Companies. OEICs are a ‘hybridâ€(tm) of unit trusts and investment trusts (see unit trusts and investment trusts).
A limited investment company whose business it is to manage an investment fund. A stake is made in the fund by buying shares in the OEIC. As it is an open-ended fund, the fund gets bigger and more shares are created the more investors there are. Likewise, the fund reduces if investors sell their shares back to the company.
Open-End Investment Companies. OEICS are a hybrid between closed-end, investment trusts and open-end investment vehicles. OEICS share investment trusts' ability to leverage themselves and, like investment trusts, investors are offered shares in OEICS, whereas they are offered unit trusts. But OEICS are open-end vehicles where the number of shares in issue expands and contracts in line with demand and whose price precisely reflects the net asset value of the total portfolio.
Open-Ended Investment Company (pronounced "oiks"). This is a new type of investment trust similar to existing investment and unit trusts.
An open-ended investment company, with a single price for buying and selling.
Open-ended investment companies are expected to take over from unit trusts in the next few years. The main difference is that they will have a single price at which savers can invest or redeem their holdings. However, investors may still have to pay a charge in addition to the stated price, an expense which is currently included in the difference between the bid and offer prices on unit trusts.
An Open Ended Investment Company (OEIC) means a collective investment fund similar to a unit trust. The differences are that OEICs quote a single price rather than a bid and offer price, and they are governed by company law rather than trust law.
Open Ended Investment Companies. A UK open-ended fund (see Funds open-ended) which is structured as a company rather than as a unit trust. They were launched in the UK in 1997.
See Open-Ended Investment Companies.
Open-ended investment companies, a substitute for unit trusts with a single price for buying and selling.
